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Age Concern director general Gordon Lishman admitted energy companies had hiked bills in response to increases in oil prices.

But he added: 'I do think in some cases, they have taken advantage of the increasing costs to boost profits in the short-term. There is a long-term problem with how to help low-income people with higher energy prices and there is too much short-termism.'

Tim Pyke, head of climate change at energy giant E.On UK, said the firm had only pushed up prices to 'reflect the growing cost' of energy on international markets.

His comments came after E.On senior executive Mark Owen-Lloyd sparked fury among hard-pressed households by joking that continued high gas and electricity prices would mean 'more money for us'.

The firm - which paid out £240million worth of dividends in 2007, after paying nothing in 2006 - was forced to apologise.

Earlier this month ministers were forced to water down a significant package of help households with punishing fuel bills after they were scuppered by the energy firms.

Gordon Brown had wanted to hand out one-off fuel payments to poorer families of up to £150 per head.

But he had to settle for announcing £910million of energy-saving measures including loft insulation, new boilers and 'green' lightbulbs paid for by the energy industry - which later admitted the cost could be passed back to customers.